John Dennis....

We could be a Red Leicester.

 

I heard that.

 

Let me just clarify what the process of Administration is all about.

The process of Administration is an attempt to rescue an insolvent company that has the potential to be put back into profit and which may have a profitable future. An major creditor or a bank with a secured loan may apply to the court asking it to appoint an independent Administrator to take over the running of a company pending the sale of assets to repay creditors/loan providers. The court would only do so if if believes that there is no alternative, because the existing shareholders of the company (and John Dennis was a large existing shareholder) will lose their shares and because of that, the control of the company. The organisation that petitioned for the appointment of the Administrator obviously has an interest, because in most cases, they want to recover some or all of their money, but the Administrator is independent of the organisation that first applied to the courts. It is the court that decides whether to appoint an Administrator, based upon the evidence presented to it.

Once the Administrator is appointed, he takes over the running of the company from the CEO and the directors. His first job is to asses the company in order to decide whether it has a future, because the Administration process can still turn into a winding up process and a liquidation if there is no basis for continuing to trade. In the case of Barnsley FC, the Administrator decided that it had a future. He decided that the best way forward was to try to sell the company to a new owner, who would set up a new company to buy the assets from the Administrator, refinance the new company with share capital or loans, and hopefully, run it better than its previous management. The Administrator then uses the proceeds of that sale to pay off the bank and all other creditors. In the case of football clubs, there is the further complication imposed by the Football League that all debts between football clubs must be paid off before a club is allowed to play in the Football League (is re-allocated its Football League share), so both secured creditors and other football clubs must be paid in preference to other unsecured creditors, who along with shareholders, are usually the losers in the whole process. Nat West bank will not have lost money, but neither will it have gained from the process. However, they have effectively have a duty to blow the whistle on the previous management structure if they do not believe that they can get the company out of the hole that it is in. The Administration process is a rescue process rather than the destruction process that it was painted as by John Dennis at the time.

 

But we never were self sufficient under Patrick he put 1million in each year of his own money for the club to keep the accademy at a certain status. He shelled out of his own pockets to back his plan up by signing mawson, conor scowen etc at the time not knowing if he would ever see a return. He left money in the kitty when he left from transfers this lot are trying to run it self sufficient but if players stock falls or/and your relegated and not willing to invest were in a pickle watch the next 5/10 years like this.

As for Leicester they were bankrolled to promotion by thai billionaires. People go on about John Dennis but like I said football has changed massively look at the championship just off the top of my head fulham,Stoke, West brom, Bournemouth have billionaire owners, parachute payments have gone through the roof and the rest are living beyond there means hoping for promotion. No way could John Dennis have us competitive in this day and age.

 

That is not quite how it worked.

Patrick Cryne loaned his money to the club in order that the club had the funds to do what you describe.

 

Ah right, so still not self sufficient? he wrote off some of those loans am I right? I stand by the rest of it and the fact that a ordinary man with little financial backing behind him would not be able to run a championship club like it was possible in 1997

 

Lots of interesting interpretations here.

We lost the majority of projected cash when ITV Digi went bust.
To cover that loss we needed the help of the bank & to utilise previously agreed credit lines.
The bank had a hard line attitude to football clubs at that time considering the challenges caused by ITV & withdrew that credit.
As a business, the assets owned outstripped the cash needed to continue.
I think this is right but I'm not quoting anything - PC appeared from nowhere and offered an injection of cash under terms that John & the Board deemed unacceptable in their remit to represent the best interests of shareholders.
They sought alternative investment. It never came. Admin became the only option as debts outweighed the cash available to them to service it post relegation.

 

I would be reluctant to invest in a house I do not own. People forget there is still a legal dispute going on with the ground with other parties; unless someone corrects me. We are more likely to do a Coventry rather than the others mentioned .

 

So if you had a council house you'd never decorate it , make the garden nice, put new flooring in? Because you don't own that but in all likelihood you will plan on living there for a long time.

 

I think that's the most on the money response on this thread.

 

Except oakwell isn't a domestic property it's a commercial property.

 

Similar scenario. The scenario still applies in my opinion.

 

So you own a business but leases the premises. Do bugger all to make it look good for your customers , install things that make your business function efficiently etcetera?

 

But look at it from the other perspective I wouldnt be doing up a property for tenants who I'm in a legal dispute with. Bit of a mess by looks could do with some statement from both parties imo

 

Genuine question here:
If it happened same/similar to above, couldn’t the board have gone back to PC at the last minute once it was clear no other options were available but administration?
Surely what ever PC was asking was better than the alternative?

Like say not disputing what you put as I was under the assumption it was something like that too.

 

It’s a balancing act though isn’t it, you might spend money to decorate/minor alterations but you wouldn’t extend to major works/costs if you couldn’t see a return worthwhile.

 

I heard Cryne and Dennis didn't get on.

 

Even so mate, it’s hard to believe either of them would throw the club under the bus for personal reasons.
Never met either of them, so again could be wrong.

 

I'm only going off pub gossip mostly when we're losing matches that this nonsense rears it's ugly head.

 

It may be that they're not allowed to. They can however do things that allow more of the North stand to be used , even for home supporters but again they are unwilling to do that.